The increase in inflation in the US in August was a record since June 2022

The US Consumer Price Index (CPI) rose 0.6% in August compared to a 0.2% increase in July and June due to higher gasoline prices. Annual inflation accelerated to 3.7%, reported US Federal Bureau of Labor Statistics.

The monthly increase was the highest since June last year. notes Reuters. In January-May 2023, monthly price growth did not fall below 0.4%.

“The gasoline price index made the largest contribution to the monthly increase across all items, accounting for more than half of the increase,” the department said in a statement.

As a result, energy prices increased by 5.6% compared to July, and food prices by 0.2%. Core inflation (does not take into account food and energy prices, Core CPI index) in monthly terms accelerated to 0.3% after 0.2% in July and June. From January to May, this figure grew by 0.4-0.5% monthly.

In annual terms, prices increased by 3.7%. In July and June, annual inflation was estimated at 3.2% and 3%, respectively. Food prices rose by an average of 4.3%, and core inflation also increased by the same amount, slowing down compared to an increase of 4.7% in July. Energy prices fell by 3.6% year on year.

On July 26, the US Federal Reserve raised its key interest rate by 25 bps. p. – from 5-5.25% to 5.25-5.5% per annum. According to the regulator, recent indicators indicate that economic activity grew at a moderate pace. Recent months have seen steady job growth, with unemployment remaining low and inflation high.

August 25, Federal Reserve Board Chairman Jerome Powell statedthat the regulator will probably have to further increase the key interest rate to curb inflation.